When The Insane Run The Asylum
In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. – Friedrich Nietzsche
Thursday, February 21, 2013
Nietzsche was right. If you sat beside Ben Bernanke in his Washington Nationals box seats while he slurped on his ice cream cone and you had a general conversation with him, he probably wouldn’t come across as being insane. “That was a nice home run,” he’d say. You’d nod.
But it is people like Bernanke who believe in collectivist systems and top-down economics who are insane.
He believes that an economy should be overseen and manipulated, Soviet Union-style, by a few white men, preferably with beards, in a secretive boardroom. Here begins the real tragedy of the commons.
Often, those who believe that we need these types of systems are not the best and the brightest. Even if they were, there still is no way to do it any better than without the top-down system. And for decades the kind of people who think they can have gravitated to the rings of power, gathering mostly in high-priced lower education colleges and universities where they are taught by prior collectivists over decades things that are truly totally insane.
They believe that the more a group of people in a geographic region spend (which they call Gross Domestic Product – GDP) the better off everyone will be. This, of course, makes no sense on an individual basis. On an individual basis, the more you produce and save the better off you will be, but they have an insane belief that it is the opposite once there is more than one person involved (the supposed “paradox of thrift”, the habits of savings that benefit the individual become harmful to the economy when practiced en masse).